1. Who audited Apple Inc.'s financial statements as of, and for the period ended September 30, 2017?
2. According to Apple Inc.'s balance sheet as of September 30, 2017, what is their largest asset?
3. According to the following website, what are the four main sections of the 10-K or 10-Q
   1. The Sections Of The 10-Q And 10-K
4. The following is adapted from Financial Management for Executives (2nd ed.): Presented below is a list of financial statement accounts. Using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and N/A for not applicable, identify (a) whether the listed accounts appear on the balance sheet (B/S) or the income statement (I/S), and if so, (b) the nature of the account (i.e., A, L, SE, R, E, or N/A).
   1. Cash flow for operating activities
   2. Inventory
   3. Cost of goods sold
   4. Marketable securities
   5. Accounts receivable
   6. Retained earnings
   7. Income tax expense
   8. Cash
   9. Depreciation expense
   10. Common stock
   11. Accounts payable
   12. Dividends paid
   13. Miscellaneous revenue
   14. Office supplies
   15. Salaries payable
   16. Land
5. The following is adapted from Financial Management for Executives (2nd ed.): Compute the return on assets (ROA) for La Verne Company using end-of-year assets in your calculation.
   1. Total revenue …………………………………$250,000
   2. Total expenses…………………………………$190,000
   3. Total assets …………………………………$400,000
6. The following is adapted from Financial Management for Executives (2nd ed.): Compute the missing amounts from the financial statements on pages 33-35 of your textbook. You may assume that accounts receivable relate only to credit sales and that accounts payable relate only to credit purchases of inventory. There were no sales of property and equipment during 2015 and any purchases of property and equipment were made using cash.

Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.

You’ve been able to retrieve the following information so far:

1.The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.’s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you’ve collected regarding its outstanding stock.

Fill in the following answers.

2.The company declared a 4% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25.00 on December 1, and is $32.00 on the actual distribution date of the stock, December 31.

Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.

Explain the differences between the Malaysian Accounting Standard Boards (MASB) and the Malaysian Institute of Accountant (MIA).

P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 3-5, 3-6

[The following information applies to the questions displayed below.]

Following are account balances (in millions of dollars) from a recent StateEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year):

These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning June 1 (the current year):

1. Provided delivery service to customers, who paid $13,390 in cash and owed $41,504 on account.
2. Purchased new equipment costing $3,914; signed a long-term note.
3. Paid $12,664 cash to rent equipment and aircraft, with $6,736 for rent this year and the rest for rent next year.
4. Spent $1,344 cash to repair facilities and equipment during the year.
5. Collected $38,685 from customers on account.
6. Repaid $390 on a long-term note (ignore interest).
7. Issued 260 million additional shares of $0.10 par value stock for $40 (that’s $40 million).
8. Paid employees $15,276 for work during the year.
9. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $13,764 cash.
10. Used $7,650 in spare parts, supplies, and fuel for the aircraft and equipment during the year.
11. Paid $1,264 on accounts payable.
12. Ordered $136 in spare parts and supplies.

P3-6 Part 2

2. Prepare T-accounts for the current year from the preceding list; enter the ending balances from May 31 as the respective beginning balances for June 1 of the current year. For each transaction, record the current year's transaction effects in the T-accounts. Label each using the letter of the transaction. (Enter your answers in millions, not in dollars.)

Earth Company manufactures a single product, Thingy. The standard cost specification sheet shows the following standards for one unit of Thingy.

The fixed overhead allocation rate is based on normal monthly capacity of 20 000 direct labour hours. Fixed overhead and production are expected to be spread evenly throughout the year.

A total of 6000 Thingy were produced during June. Actual costs incurred during June were:

20,000 kg of material Y were purchased @ $13.50 per kg 22,000 kg of material Y were used.

18,000 direct labour hours were worked at an average wage rate of $15 per hour Actual overhead incurred:

                          Fixed                          $85 000

                          Variable                      $35 000

Required:

1. Compute the following variances:   (6 marks)

1. Direct material price variance

2. Direct material quantity variance

3. Direct labour rate variance

4. Direct labour efficiency variance

5. Variable overhead spending variance

6. Fixed overhead budget variance

2. Discuss three factors that could cause an unfavourable direct material quantity variance.

On January 1, NewTune Company exchanges 17,360 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTune’s shares has a $4 par value and a $50 fair value. The fair value of the stock exchanged in the acquisition was considered equal to On-the-Go’s fair value. NewTune also paid $44,650 in stock registration and issuance costs in connection with the merger.

Several of On-the-Go’s accounts’ fair values differ from their book values on this date (credit balances in parentheses):

Precombination book values for the two companies are as follows:

1. Assume that this combination is a statutory merger so that On-the-Go’s accounts will be transferred to the records of NewTune. On-the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for NewTune as of the acquisition date.

2. Assume that no dissolution takes place in connection with this combination. Rather, both companies retain their separate legal identities. Prepare a worksheet to consolidate the two companies as of the combination date.

1. An offer to purchase a notebook for $50 creates a power in the offeree to create a contract which is binding on the offeror

   True

   False

2. The use of force or fear is not necessary for an act of theft to be considered a robbery.

True

False

3. An offer :

4. The purpose of strict products liability liability statutes is to shift the cost of injuries from the victim to the manufacturer, who in turn can bear that burden by buying insurance funded with the proceeds of sales of the product.

True

False

5. Green Grocers, Inc., transports goods at the request of Hiway Transport Company without expressly agreeing on a price or terms. In a later dispute between these parties over the delivery, the doctrine of quasi contract can be used because

6. When a party makes a lawful offer, he creates a power in the other party to bind him to an enforceable contract by simply accepting the offer

True

False

7. The mental element of a crime is:

8. Under the general rule, and unless the offer says otherwise,

9. A unilateral contract is formed when the one receiving the offer promises to perform; the requested act or performance.

True

False

10. A "formal contract" requires a special form or method of creation or formation to be enforceable.

True

False

Pension plan was adopted on Jan 1 2018, all employees were granted benefits for prior serviced. This created PBO of $205,352. Company immediately contributed $155,000 to the plan. In 2018 Company provided additional funds of $130,000. Interest was outstanding all year long, and accrued at 4%. Return on planned assets invested in January was expected to approximate 8%. The plan is administered by trust department of regional bank. The planned assets are invested in exchange-listed equity securities 40%, corporate bonds 15% and U.S. government bonds 45% There is an expected rate of compensation increase of 5 %, yet the rate did not happen this year. Compute pension expense.

Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 80% complete as to materials and 40% complete as to conversion costs.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, $56,160; direct labor, $21,920; manufacturing overhead, $16,840.
Costs incurred during the month: direct materials, $484,000; direct labor, $198,880; manufacturing overhead, $407,160.
What is the equivalent unit cost for the conversion costs assuming Bentley uses weighted-average process costing?

$4.90.

$5.28.

$5.45.

$5.65.

On January 1, 2020, LMB, Inc. purchased some equipment for $42,000. In order to prepare the equipment for use, LMB had to pay $8,000 to have the equipment installed. LMB aos estimates that the equipment will be used for 5 years and that it can be sold to a smaller company for parts after 5 years. It expects to sell the parts for $5,000. LMB will use the equipment for 5 years but also estimates that it will produce 10,000 units in total during that time.

LMB's units of production were as follows:

2020: 2,000 units

2021: 4,000 units

2022: 2,000 units

2023: 1,500 units

2024: 500 units

Using the Units of Production method, calculate depreciation expense for the year ended December 31, 2020 (first blank) and for the year ended December 31, 2021 (second blank).  

In the third blank, fill in the total accumulated depreciation after the 2nd year (12/31/2020).

In the fourth blank, fill in the net book value of the equipment on 12/31/2021.

Question 11 options:

13. Topic: Change to the Equity Method On January 1, Mauer purchased 15% of Thome's common stock. On August 1, it purchased another 30% of Thome's common stock. During October, Thome declared and paid a cash dividend on its common stock. How much income from Thome should Mauer report on its income statement?

a. 15% of Thome's income for January 1 to July 31, plus 45% of Thome's income for the remainder of the year
b. 45% of Thome's income from August 1 to December 31 only
c. 40% of Thome's income
d. The amount of dividends received from Thome

14. Topic: Preacquisition Contingencies Accounting standards require that a portion of the cost of an acquired company be allocated to investee liabilities. However, often in the case of pre-existing contingent liabilities, the amounts may be unknown at the acquisition date. What are the general financial reporting requirements for the consolidated statements at date of acquisition?

a. If the fair value of a pre-existing contingent liability is unknown, the liability should not be recognized.
b. A contingent liability would not be recognized unless the loss was "probable."
c. Contingencies meeting the "possible" threshold would be disclosed, not accrued.
d. All of the above statements are true.

**Please provide computations and explanation!!

Transactions for Fixed Assets, Including Sale

The following transactions and adjusting entries were completed by Robinson Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used.

Required:

Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Round your final answers to the nearest cent.

Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:

The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer’s Department. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the railroad cars inventories. It makes sure the right freight cars are at the right place at the right time. The Treasurer’s Department conducts a variety of services for the company as a whole. The following additional information has been gathered:

Required:

1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations.

2. What is the profit margin of each division? Round to one decimal place.

Identify the most successful region according to the profit margin.
North

3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?

1. The method used to evaluate the performance of the divisions should be reevaluated.
2. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets).
3. A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets).
4. None of these choices would be included.
5. All of these choices (a, b & c) would be included.

Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2021, for $600 million.

At the date of purchase, the book value of Vancouver's net assets was $875 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $5 million for the inventory and by $30 million for the plant facilities.

The estimated useful life of the plant facilities is 15 years. All inventory acquired was sold during 2021.

Vancouver reported net income of $220 million for the year ended December 31, 2021. Vancouver paid a cash dividend of $60 million.

Required:
1. Prepare all appropriate journal entries related to the investment during 2021.
2. What amount should Northwest report as its income from its investment in Vancouver for the year ended December 31, 2021?
3. What amount should Northwest report in its balance sheet as its investment in Vancouver?
4. What should Northwest report in its statement of cash flows regarding its investment in Vancouver?